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Greenfield and Brownfield projects

  • Vaid's ICS, Lucknow
  • 24, Aug 2021
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Why in News:

The Finance ministry has recently said that the Green field assets will be monetized .

About :

Greenfield and brownfield investments are two types of foreign direct investment.

  • With greenfield investing, a company will build its own, brand new facilities from the ground up.
  • Brownfield investment happens when a company purchases or leases an existing facility.
  • In a greenfield investment, parent companyopens a subsidiary in another country. Instead of buying an existing facility in that country, the company begins a new venture by constructing new facilities in that country.
  • Brownfield investments, an entity purchases or leases an existing facility to begin new production.
  • Companies may consider this approach a great time and money saver since there is no need to go through the motions of building a brand new building.

India Investment Grid:

  • India Investment Grid (IIG) is an initiative of Department for Promotion of Industry & Internal Trade (DPIIT) Ministry of Commerce, Government of India and Invest India, the National Investment Promotion and Facilitation Agency.
  • The India Investment Grid (IIG) is a home for investment opportunities across India which works on a single interactive platform.
  • This was formed as an initiative to enhance the business platform in India.

Invest India:

  • Invest India is the National Investment Promotion and Facilitation Agency of Indiaand acts as the first point of reference for investors in India.
  • It is set up as a nonprofit venture under the Department for Promotion of Industry & Internal Trade (DPIIT), Ministry of Commerce and Industries, Government of India.
  • Operationalized in early 2010, Invest India is set up as a joint venture company between the Department for Promotion of Industry & Internal Trade (DPIIT) (35% equity), Federation of Indian Chambers of Commerce and Industry (FICCI) (51% equity), and State Governments of India (5% each).

Facts for Prelims:

Reverse Greenshoe Option

The definition of a reverse greenshoe option, also known as an overallotment option, is a provision used by underwriters in the initial public offering (IPO) process.

It is intended to provide increased price stability for the newly-listed security.